A question commonly asked by those looking to buy a commercial property or business is “what is good will?”
In simple and general terms, the goodwill of a business is what attracts customers and clients to the business. It is the value of the business not connected with the value of the assets of the business. On the other hand, a Conveyancing Solicitor or Commercial Lawyer will tell you that the answer to the question “what is goodwill?” is that it is a type of intangible personal property intrinsically linked to a business. When you buy a business, you will generally purchase the business assets, stock, plant and equipment and the goodwill. A Conveyancing Solicitor or Commercial Lawyer can help you restrict the vendor against interfering with the goodwill and help you arrange a business valuation to determine the proper value of the goodwill.
Goodwill is the core of the value of a business. As such, from a purchaser point of view, it is vital that the contract for sale of the business is sufficient to protect the goodwill. That is, conditions might be included into the contract which prohibits the vendor from:-
- Conducting the business in a manner that is destructive to the reputation of the business (between exchange and prior to settlement)
- Making false or degrading assertions about the purchaser to potential clients or customers
- Conducting a similar business within close proximity and within a set period of time
At law, there are two types of goodwill: local goodwill and personal goodwill. Local goodwill is reliant on the actual and physical location of the business. Personal goodwill attaches to the actual proprietors of the business, their skill and ability to attract customers.
For more information, contact our office and arrange an appointment with an experienced Commercial Lawyer. Our Commercial Lawyers work in cohort with Chartered Accountants and Financial Advisors. With a multi-disciplinary team offering a total service, Navado provides its clients with a unique chance to take advantage of expertise and skill across an array of professional areas. For more information, explore our website or contact our office on (02) 9233 4048. For a full list of our office locations, with complete addresses, click on our Locations tab above.
- We have been operating since 2001
- Fixed Fees for a commercial purchase
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This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.
Date: Dec 08, 2011
Tags: conveyancing, commercial purchase
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Date: Mar 03, 2012
Tags: conveyancing, residential purchase, commercial purchase
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Date: Dec 08, 2011
Tags: conveyancing, commercial purchase
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Date: Feb 24, 2012
Tags: conveyancing, residential purchase, residential sale, commercial purchase, commercial sale
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Date: Dec 08, 2011
Tags: conveyancing, commercial purchase
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Date: Dec 08, 2011
Tags: conveyancing, commercial purchase
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Date: Dec 08, 2011
Tags: conveyancing, commercial purchase
It is not particularly difficult to identify whether there is a current lease on the property or not. The difficulty arises in determining the nature and terms of the lease, the length of the lease and ensuring that tenure is secured. If you are look…
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Date: Dec 08, 2011
Tags: conveyancing, commercial purchase, commercial sale
By focusing on volume and quality, we can afford to offer expert Commercial Conveyancing services at a competitive rate. We charge fixed fees of $1250 (plus GST, plus disbursements) for the standard commercial or industrial sale. This fee covers the …
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If you are buying or selling a property and require Conveyancing services, you should make an appointment to see one of our Conveyancing Lawyers in one of the following locations:
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